FTSE 100 bolstered by US cliff hopes

London's blue-chip index climbed 0.9pc in early deals.

Optimism that US politicians are getting to grips with the fiscal cliff sent London's blue-chips higher in early trade.

The FTSE 100 climbed 52 points this morning, continuing the late rally that rescued the benchmark index from closing lower yesterday. Positive comments from US House Speaker John Boehner indicating a deal could be reached boosted investor sentiment, and riskier mining shares led the blue-chip index up.

With traders in good spirits, only nine companies on the FTSE 100 moved lower. The biggest faller was John Wood Group, following a stake sale from the Wood Family Trust as well as members of the Wood family. The sale totalled 4.4pc of the energy services company and the shares were priced at 775p apiece.

Ian Wood, who is stepping down from the role of chairman is the grandson of the group's founder, is retaining his 2.4pc holding.

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On the FTSE 250, which rose 103 points, Invensys once again topped the table following yesterday's news the group is selling its rail division to Siemens for £1.74bn and returning cash to shareholders.

Barclays described the deal as "transformational" for the mid-cap company, adding that "the deal also establishes a long-term funding solution for the UK pension".

"We have long acknowledged Invensys has assets that could attract potential suitors and with confirmed talks with Emerson just five months old, we believe they now could renew their interest."

Shares in the industrial software business advanced 10.2pc.

Finally, disappointing first-half results from packaging company RPC Group saw the shares fall 4.7pc, the biggest drop on the FTSE 250.